A useful guide to investing is to ignore whatever politicians tell you. It might even be true that the world will be more equal, richer in a very real sense and better overall when the extraction of moonbeams from cucumbers project works. That don’t mean there’s money to be made out of it.
On the other hand, we do need to pay attention to politics. There are certain organisations out there that just aren’t going to be allowed to disappear and not all of them are those that have been paying for political election campaigns. One of those companies is Boeing – another is Airbus of course, given the European Union’s insistence upon it being a flagbearer – so the possibility of the organisation disappearing, no matter what they’ve done, is zero.
At which point, well, how low can it go?
Sure, the company has got its problems, as I’ve said before. Those crashes; we’ve some worries about how much they’re self-insuring – not the passenger losses, but the consequential businesses losses of the airlines that were flying the 737 Max. The Dreamliner has a quality issue or two. Just recently more reports of foreign objects in fuel tanks, the wiring rigs aren’t passing muster and so on.
Even with all of that it’s just not going to disappear.
Quite apart from the fact that the Feds aren’t going to allow a major defense contractor to hit the buffers. Nor is the Trump Admin going to allow one of the world’s two major airframe manufacturers to keel over. Not when it’s the EU’s Airbus (OTCPK:EADSF) that is the other one.
The question is, how low does it go before the rebound?